Connected services projected to grow to 270% as the electric vehicle market increases

Energy

A study from ABI Research states that the growth projections in electric vehicles have been tremendous, and if achieved, there will be a boom in connected services.

Subscriptions of connected services for the electric vehicles include charging station locators, eco-routing as well as EV telematics. The projection from the analyst’s connected services for the electric vehicle report states that the growth of connected services from the year 2020 to the year 2024 will grow by 270% and should reach about 7 million subscribers. 

Some major economies have decided to ban the internal combustion engine cars, thus sparking the growth of connected services. Countries such as Norway, Germany, Sweden, India, China, and other countries have the aim to completely ban new ICE vehicle sales by 2025 for Norway and the rest by 2030.

In a statement made by Maite Bezerra, the automotive analyst at ABI Research and smart mobility, the sales of electric vehicles have had slow market growth in previous years. But, due to the growth in the number of counties declaring deadlines to end of ICE vehicle sales, higher adoption of electric cars will be expected. As Europe continues to enforce emission rules in their cities, in a couple of years, it looks like only electric vehicles will be allowed to run in the urban areas. By 2030 the expectation is that 27 million consumer as well as one million plug-in electric cars will be sold.

This survey also showed a couple of challenges to adoption of electric cars and their projected growth. The main problem is the lack of charging infrastructure as well as the anxiety on the range. According to ABI Research, there is a substantial increase in the quantity of the charging stations with countries such as Japan and China having over 40,000 charging stations.

Well, there is a general perception that charging stations are deficient due to little or nonexistent communication between the electric vehicles as well as charging stations. The connected services available such as HERE’s EV charging as well as TomTom’s EV routing services will help change that perception as they display information on the location of charging stations, the real-time availability to the driver as well as compatibility to the vehicle.

Some existing Horizon applications that yet to gain significant market traction can help electric cars optimize acceleration as well as braking, increase battery range exponentially and save energy. Carmakers such as Nissan, Tesla, and Peugeot are offering comprehensive connected services to their electric vehicles.

For the sustenance of electric car adoption, communication between utility companies and charging stations is critical. Without this communication, ABI notes that an increase in electric cars may pose a challenge for the power stations as overload peaks can destabilize the grid.

The introduction of smart systems will help monitor, control as well as restrict use of chargers to ensure optimal energy consumption. The vehicle to grid (V2G) communication from companies such as Muvve and Virta helps balance the grid through reading frequency of power adoption as well as adjusting charging and discharging. Well, with this technology adoption in progress, Electric Vehicles could smoothen the rise in electricity demand by selling the energy back to the national gird or use stored energy to be able to reduce the energy consumption from the houses or buildings; this is all according to ABI. Companies like Nissan and Mitsubishi are utilizing V2G technology.

In the market, the long-term connected services that offer convenience, as well as reduced range anxiety, will receive high traction with consumer electric vehicles. By 2030 it is predicted that connected services for electric cars could reach 26.37million and offer a revenue of up to $222M. 

According to Bezerra, he notes that vehicles are the main assets for fleet managers; thus, services such as V2G communication and Electric vehicle telematics are valuable as they reduce costs. Services such as Mercedes PRO e-Vito make use of Geotab Telematics Units. Smartphone applications can offer location services to the electric vehicle, but they can not compare to the accuracy provides by embedded sensors in the vehicle. 

Notable the connected services provide information to the user, and also fleet managers and car manufacturers. The information can help improve the car’s performance or offer perspective in other targeted solutions.

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